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Forex pairs in this Article » EUR/USD (London) - Overnight, the release of the Reserve Bank of Australia minutes was a damp squib. The only item of note being the reiteration of the stance that the AUD is “uncomfortably high”, damaging demand for Australian exports. However, while the minutes contained the view that the RBA still had the option to cut rates further as has been contained in previous releases, it omitted the caveat of previous minutes that this view should not be seen as “an imminent intention to reduce them.”

AUD/USD is up 0.32 percent to USD0.9408.

Asian equity markets struggled to add to yesterday’s gains, possibly a signal of what is to come in European and US markets today. The Nikkei dropped 0.25 percent and the Hang Seng added 0.19 percent – both shedding intraday gains.

In Europe this morning, focus will be in the numbers from the German ZEW Institute. Consensus expectations are for a 1 percent rise on last month, but there is potential for upside given Germany’s strong PMI numbers in contrast to the rest of the Eurozone.

Ben Bernanke is scheduled to speak today, but not until markets close at 7pm EST. He will speak on “Communication and Monetary Policy”. His nominated successor, Janet Yellen, has been the biggest driver in the push for Fed forward guidance policy and increased transparency, and his words this evening may reflect that.
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